Elizabeth Holmes, the former CEO and founder of Theranos, has recently filed an appeal against her conviction for fraud and conspiracy, which has temporarily delayed her prison sentence. Holmes’ conviction was the result of a four-month trial that exposed her role in deceiving investors, patients, and regulators about the capabilities and accuracy of Theranos’ technology. She was sentenced to 11 years and three months in prison in November 2022 and was expected to report to prison on April 27, 2023.
Holmes’ lawyers filed an appeal on April 26, 2023, with the U.S. 9th Circuit Court of Appeals in San Francisco to overturn a previous decision by U.S. District Judge Edward Davila that denied her request to remain free while she appeals her conviction. As per the court’s rules, her appeal has automatically stayed her reporting date until the court considers her appeal, and she has been free on bail since her conviction.
Holmes and her former lover and co-defendant, Ramesh “Sunny” Balwani, were accused of orchestrating one of the biggest frauds in Silicon Valley history by claiming that Theranos had developed a revolutionary blood testing system. They raised nearly $1 billion from investors and partnered with major companies and pharmacies to offer their tests to consumers.
However, it turned out that Theranos’ technology was unreliable and inaccurate, and the company was using conventional machines from other manufacturers to run most of its tests. The deception was exposed by a Wall Street Journal investigation in 2015, which triggered a series of lawsuits, investigations, and regulatory actions that led to the downfall of Theranos.
Holmes has maintained her innocence throughout the trial and sentencing and has argued that she was unaware of any wrongdoing or fraud. She also blamed Balwani for being abusive and controlling and for influencing her decisions and actions. In her defense, she testified for seven days and denied any criminal intent.
The appeal filed by Holmes challenges several aspects of her trial and conviction, such as the legal definition of fraud and conspiracy, prejudicial evidence and testimony from government witnesses, and the influence of extensive media coverage and public attention on the jury’s verdict.
Although Holmes’ appeal is a long shot, it may buy her some more time before she has to face the consequences of her actions. However, most criminal convictions are upheld by appellate courts, making it unlikely that her appeal will succeed.
It is uncertain how long it will take for the 9th Circuit to rule on Holmes’ appeal, but in the meantime, she will remain free on bail conditions that include wearing an electronic ankle monitor, surrendering her passport, staying within Northern California except for court appearances or meetings with her lawyers, and not contacting any victims or witnesses in her case.
